Switch to the dark mode that's kinder on your eyes at night time.

Switch to the light mode that's kinder on your eyes at day time.

Add New Post

Switch to the dark mode that's kinder on your eyes at night time.

Switch to the light mode that's kinder on your eyes at day time.

Add New Post
in

Crackdown on Illegal Invoice Trading: Ministry Seeks Legislative Revisions

Illegal invoice trading cases discovered, ministry proposes amending laws
invoice460.jpg

The Ministry of Finance (MOF) has issued a response addressing proposals to revise and enhance sections of seven laws, including the Tax Management Law.

A significant aspect of the proposed legislation is the provision of immunity for tax officers who accurately follow regulations. This means that tax officials will not be held accountable if businesses engage in fraudulent tax reporting.

Despite the nationwide implementation of e-invoices, the MOF has noted an increase in instances of illegal invoice trading detected by law enforcement. E-invoices alone do not prevent fraudulent activities, as tax agencies cannot draw conclusions without verifying and investigating the business actions of enterprises, even if they are mandated to submit e-invoices.

The ministry highlighted that existing regulations governing tax administration lack clarity regarding the duties of tax officers, which can hinder their performance, particularly concerning tax refunds.

Tax officials cannot oversee all data, and the automated systems in place are unable to monitor every transaction to identify tax fraud cases.

Given that tax authorities do not carry out investigations, verifying taxpayer activities often requires extensive collaboration with other entities including commercial banks, law enforcement, and customs.

Under the “refund first, audit later” policy, it is essential to define the responsibilities of tax authorities more specifically. Tax officers are limited to reviewing information provided in business documentation and are not liable for inaccuracies in businesses’ tax declarations that contribute to erroneous tax refund decisions.

In August 2024, the General Department of Taxation (GDT) issued Dispatch No 3385 aimed at addressing the issue of illegal invoices to local tax offices.

The GDT referenced Court Judgment No. 115 from December 29, 2023, regarding illegal invoice activities in Phu Tho province and various other regions throughout the country.

The court determined that from December 2020 to October 2022, Nguyen Minh Tu, directly or via intermediaries, illegally sold 1,025,712 VAT invoices to 88,053 entities using 637 different companies, while also establishing six finance companies to facilitate regular payments through banks.


Report

Check This:  If you’re thinking of skipping today’s shower, you probably want to read this

What do you think?

1.2k Points
Upvote Downvote

Leave a Reply

Avatar

Your email address will not be published. Required fields are marked *

Back to Top
close

Log In

Forgot password?

Forgot password?

Enter your account data and we will send you a link to reset your password.

Your password reset link appears to be invalid or expired.

Log in

Privacy Policy

To use social login you have to agree with the storage and handling of your data by this website. %privacy_policy%

Add to Collection

No Collections

Here you'll find all collections you've created before.